How to Do Production Planning and Control

3344 Words Jan 20th, 2013 14 Pages
Production, Planning and Control
Dr. Sindhuja

• The most important business module – Production. Why?...

Objectives
• The ultimate objective of production planning and control, is to contribute to the profits of the enterprise. • this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. • Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines • and to provide the means for ensuring the operation of the plant in accordance with these plans.

Components of PP
• SOP: Sales and operations planning • DRP: Distribution Requirements Planning • MRP: Materials Requirement
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• It is tightly integrated with modules such as MM and SD thru the use of MRP which is also part of PP

Flow of Production Planning
Customer order management Demand management

I/P MRP BOM

Purchase requisition

Planned order

A

A

Define work center

Routing

Goods issue

Release order

Order confirmation

Order settlement

Flow of PP
• Demand generation thru demand management calculates the quantities to produce and the time for the final assembly • data from demand management is transferred to MRP. The data from demand mgt can come from Customer Sales Order (firm) or Planned Order (forecast).

• MRP checks for the availability of material at various stages of BOM.
– In case material is not available MRP generates planned order and Purchase requisition for production of components in house and procurement from vendor respectively.

• The planned orders are converted into production order by the planner and the purchase requisition are converted into purchase order by the purchaser.

• Production in charge converts the planned order to production order and carries out the production activities once the order is released for production. • Production is carried out as per the operation steps provided in the routing. • Work centers are also mentioned with each operation in the routings where these operations are to be carried out. • Once the
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